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Frequent Contributor
Posts: 407
Registered: ‎02-02-2010
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Too many recent loans?

Applied at a credit union for a refinance, however the underwriter commented she wasn't comfortable with it, since I don't keep cars very long. I usually sell after a year or two, making mostly principal payments and selling once I pay half off or so.

Why does this matter to the bank if I do this, is it just lost profit? I don't see how risk could be associated with this when the car is less then 50% ltv at that point.

Another credit union had no questions asked when I applied, only when I wanted the payments to be.
AkAir $50k | Marriott $65k | Local CU $8k
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Posts: 10,136
Registered: ‎03-06-2010

Re: Too many recent loans?


revvystoke wrote:
Applied at a credit union for a refinance, however the underwriter commented she wasn't comfortable with it, since I don't keep cars very long. I usually sell after a year or two, making mostly principal payments and selling once I pay half off or so.

Why does this matter to the bank if I do this, is it just lost profit? I don't see how risk could be associated with this when the car is less then 50% ltv at that point.

Another credit union had no questions asked when I applied, only when I wanted the payments to be.

They all have their own guidelines.  It could be that the first CU just doesn't really want to take on short term (in their eyes) auto loans.  Maybe it represents an expense to them for the servicing fees rather than a profit. Who knows?  I wouldn't take it personally - lenders change their own guidelines all the time and they certainly don't tell the public!

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